CORPORATE MEMORY 2019 2 3 4 5 6 AUSTRALIS SEAFOODS INDEX 7 Corporate Memory Corporate Memory 2019 2019
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1 CORPORATE MEMORY 2019 2 3 4 5 6 AUSTRALIS SEAFOODS INDEX 7 Corporate Memory Corporate Memory 2019 2019 CONTENT 9 PRESENTATION 10 Letter from the President 14 Featured milestones 2019 17 THE COMPANY 18 Identification of the company 20 Ownership and Control 22 Structure 24 Mission, Vision and Values 26 Historical review 29 CORPORATE GOVERNANCE 30 Board 32 Administration 33 Remunerations 35 Diversity within the company 36 Directors' Committee Annual Management Report 38 Information on relevant or essential facts 45 THE SALMON INDUSTRY 47 The product 48 The offer 50 The demand 52 Competition 53 Prices 57 THE BUSINESS 58 Business description 63 Investment and financing policy 65 Risk factors 67 Facilities 68 Insurance 68 Licenses and concessions 71 Legal framework 72 Dividend policy 72 Distributable profit 74 Risk classifications 75 Stock titles 76 Information on subsidiaries and associates 85 Liability statement 87 CONSOLIDATED FINANCIAL STATEMENTS 8 AUSTRALIS SEAFOODS PRESENTATION 9 Corporate Memory Corporate Memory 2019 2019 PRESENTATION 10 AUSTRALIS SEAFOODS PRESENTATION 11 Corporate Memory Corporate Memory 2019 2019 LETTER FROM THE PRESIDENT For Australis, this was a year of development, investment and evolution, For Australis, this was a year of development, investment and evolution, which in turn brought about the change of main controller. Legend Holdings Corporations, a Chinese business conglomerate, which in turn brought about the change of main controller. Legend Holdings successfully concluded the Public Offering of Shares (OPA), to acquire 100% of the company, Corporations, a Chinese business conglomerate, successfully concluded the which culminated in an acceptance of 99.89% of the property, the rest remaining with minority shareholders. Public Offering of Shares (OPA), to acquire 100% of the company, which culminated in an acceptance of 99.89% of the property, the rest remaining From a commercial point of view, during the year in question, the industry presented consistent prices above the average of the last 10 years, despite the fact that the world supply of salmon grew by with minority shareholders. 6.5% compared to 2018. In relation to consumer demand and valuation, we can highlight that salmon continues to position itself as a healthy, tasty and versatile source of protein to consume. On the other hand, the consolidated figures show total sales of US $ 407 million and a profit after I am pleased to write to you to present the Corporate Memory and Financial Statements of Australis taxes of US $ 66 million, numbers that confirm, that for Australis, 2019 continued to be a year of Seafoods SA corresponding to the 2019 financial year. This period was marked by a series of great development. milestones that have been fundamental in terms of consolidation and expansion of our company, from a historical harvest of 71,976 tons WFE, the positioning of our operation in the Magallanes region and definitions regarding sustainability. This year's production had an increase of more than 20% compared to the previous year, maintaining good productive and sanitary results in our farms. The company continued its consolidation and development in the Magallanes region, which in December 2019, represented almost 50% of total production. We are very satisfied with the achievements made to date and focused on continuing to consolidate the production strategy with a focus on sustainability and efficiency. In turn, this year the construction works of our Dumestre Processing Plant began, located in the city of Puerto Natales, Magallanes region. Construction includes state-of-the-art infrastructure and production equipment, this is an ambitious project for our company, which is in line with the positioning and growth strategy in the region. Added to this is the purchase of the Pesquera Torres del Paine Limitada, in the city of Punta Arenas which allows us to process 40 thousand tons of raw material per year. This 2019 for us was also marked by the development of the guidelines of our first 2020-2030 sustainability strategy. This in turn included the first measurement of our carbon footprint. A job that Jie Tang is in direct line with our vision as a company, but also with our operational strategy. More details can CHAIRMAN be found in our Sustainability Report. AUSTRALIS SEAFOODS S.A. 12 AUSTRALIS SEAFOODS PRESENTATION 13 Corporate Memory Corporate Memory 2019 2019 We are a company that works to deliver to the world the best salmon produced in a sustainable way and of the highest quality 14 AUSTRALIS SEAFOODS PRESENTATION 15 Corporate Memory Corporate Memory 2019 2019 FEATURED MILESTONES 2019 ACQUISITION OF PLANTA CONTROLLER CHANGE PROCESADORA TORRES DEL AUSTRALIS SEAFOODS S.A. PAINE LIMITADA Legend Holdings Corporation, a On July 10, 2019 Australis Seafoods business conglomerate of the People's S.A. formalizes the indirect control of Republic of China, through its Pesquera Torres del Paine Limitada and subsidiary in Chile, Food Investment with it the operation of its process plant SpA, successfully terminates the Public located in the city of Punta Arenas. Offering of Shares “OPA”, launched This, after fulfilling all the conditions on June 26, 2019 to acquire 100 % proposed in the Purchase and Sales of the entire company. As a result, contract signed on February 28, 2019. acceptance of the offer was received for 6,814,640,680 shares, equivalent The purchase of the plant is in line with to 99.89% of the property. Leaving the company's production strategy of the remaining percentage in control of making production processes in the small shareholders. Magallanes region more efficient and effective. LARGEST HISTORICAL HARVEST DUMESTRE PROCESSING PLANT CONSTRUCTION In 2019 Australis Seafoods S.A. During 2019, construction work began reached its highest historical production on the new Dumestre Processing Plant, of salmonids by harvesting 71,976 located in the city of Puerto Natales, tons WFE, where 49.5% of what was Magallanes region. With a strong harvested came from the XII region. investment in infrastructure and state- of-the-art production equipment, the first phase is expected to be operational by the end of 2020. 16 AUSTRALIS SEAFOODS THE COMPANY 17 Corporate Memory Corporate Memory 2019 2019 THE COMPANY 18 AUSTRALIS SEAFOODS THE COMPANY 19 Corporate Memory Corporate Memory 2019 2019 IDENTIFICACIÓN DE LA SOCIEDAD MAIN BRANDS USED IN THE MARKETING OF GOODS AND BASIC IDENTIFICATION CONSTITUTIVE DOCUMENTS SOCIAL OBJECT SERVICES CONTACT NAME OR LEGAL NAME Australis Seafoods S.A. (the Purchase, sale, breeding, farming, The main brands used by the Company Australis Seafoods S.A. “Company”) was incorporated by import, export, commercialization and its subsidiaries for the purposes of PHONE means of a public deed dated October and distribution of all kinds of marketing its goods or services are the +56 65 256 6100 FANTASY NAME 31, 2007, granted at the notary hydrobiological resources and especially following: Does not have one of Santiago by Mr. Iván Torrealba of salmon species. Also all businesses WEB PAGE Acevedo, whose extract was registered that are directly or indirectly related to www.australis-seafoods.com REGISTERED OFFICE in the Commercial Registry of the the exercise of fishing and aquaculture Decher 161, Puerto Varas Real Estate Conservator of Santiago activities. EMAIL to pages 48,775, number 34,583, [email protected] UNIQUE TAX NUMBER (RUT) from the year 2007, and published in 76,003,557-2 the Official Journal on November 21, INVESTOR RELATIONS 2007. [email protected] TYPE OF ENTITY CONCERNED Open stock company. REGISTRATION IN THE SECURITIES REGISTRY N ° 1074 dated May 19, 2011 20 AUSTRALIS SEAFOODS THE COMPANY 21 Corporate Memory Corporate Memory 2019 2019 OWNERSHIP AND CONTROL TOTAL NUMBER OF SHAREHOLDERS At the end of the annual period, the COMPANY CONTROL total number of shareholders of the SITUATION Company is 31. Pursuant to the provisions of Title XV IDENTIFICATION OF 12 LARGEST SHAREHOLDERS: of Law No. 18,045 on the Securities As of December 31, 2019, the 12 largest shareholders of the Company are: Market, as of December 31, 2019, IMPORTANT CHANGES IN PROPERTY the Company is controlled by Food Investment SpA, which holds 99.89% NAME OR LEGAL NAME STOCK PERCENTAGE On June 26, 2019, the company of its capital. Food Investment SpA Food Investment SpA published is in turn 100% controlled by Fresh FOOD INVESTMENT SPA 6.818.336.258 99,892% a notice of commencement of a Investment SpA. There are no natural public offer for the acquisition of persons behind the company Fresh shares for up to 100% of the shares Investment SpA that can be classified BCI Corredora de Bolsa S.A. 2.002.915 0,029% issued by Australis Seafoods S.A., as controllers under the terms of Title in accordance with the provisions XV of Law No. 18,045. There are no of article 201 of the Securities joint action agreements. SANTANDER CORREDORES DE BOLSA 1.148.669 0,017% LIMITADA Market Law (the “OPA”), which was extended between June 27 and July BANCHILE Corredores de Bolsa S.A. 987.579 0,014% 26, 2019, both dates inclusive. During the term of the OPA, MONEDA CORREDORES DE BOLSA LIMITADA 595.238 0,009% Food Investment SpA received acceptances for 6,814,640,680 (six CONSORCIO Corredores de Bolsa S.A. 479.938 0,007% thousand eight hundred fourteen million six hundred forty thousand six hundred and eighty) shares, BANCOESTADO Corredores de Bolsa S.A. 461.156 0,007% equivalent to 99.838% (ninety-nine point eight hundred thirty-eight BICE INVERSIONES Corredores de Bolsa S.A. 317.835 0,005% percent) of the ordinary shares, of a single series and without nominal value, fully subscribed and paid, EUROAMERICA Corredores de Bolsa S.A. 253.998 0,004% which were acquired by Food Investment SpA. VALORES SECURITY Corredores de Bolsa S.A.